Jamie and Eddie are buying an apartment for $320,000. Their loan officer tells them that their principal will decrease by 4.5% every year if they make the minimum mortgage payments. Complete the table to predict the principal for the first 3 years. (Round to the nearest hundredth, if applicable.)(2 points)

Question

Year Principal
0 $320,000.00
1 $
2 $
3 $
Remaining Atte

Answer 1

To predict the principal for the first three years given that it decreases by 4.5% each year, we can calculate the new principal for each year using the formula:

\[ \text{New Principal} = \text{Old Principal} \times (1 - \text{Decrease Rate}) \]

Where the decrease rate is 4.5%, or 0.045. Let's calculate the principal for each year:

Year 1

\[ \text{Principal for Year 1} = 320,000 \times (1 - 0.045) = 320,000 \times 0.955 = 305,600 \]

Year 2

\[ \text{Principal for Year 2} = 305,600 \times (1 - 0.045) = 305,600 \times 0.955 = 291,836 \]

Year 3

\[ \text{Principal for Year 3} = 291,836 \times (1 - 0.045) = 291,836 \times 0.955 = 278,258.28 \]

Now, rounding to the nearest hundredth, we can fill in the table:

| Year | Principal | |------|-------------------| | 0 | $320,000.00 | | 1 | $305,600.00 | | 2 | $291,836.00 | | 3 | $278,258.28 |

So the completed table is:

• Year 1: $305,600.00
• Year 2: $291,836.00
• Year 3: $278,258.28

Answer 2

the last two are incorrect please fix them